7 projects using the power of web3 to support smallholder farmers
There are an estimated 500 million smallholder farmer households (upwards of 2 billion individuals) around the world. These farmers play an essential role in the world food system, producing about one third of the global food supply, a large percentage of which stays within local economies, supporting those in developing countries.
Despite the massive role these smallholder farmers play in supporting food supply chains, many of them are still living on less than $2 a day and are struggling to get by. Many of the these smallholder farmers struggle to complete with commercial farmers, often due to a lack of access to technology to increase productivity, and face substantial challenges related to climate change, including increased drought and extreme weather events. These factors, in conjunction, make it extremely difficult for smallholder farmers to escape the cycle of poverty and thrive.
This has been a challenge that many large NGOs, including the World Food Programme and the Gates Foundation, among others, have been working to address for decades. Many innovative solutions have been created to support smallholder farmers, yet these same challenges persist.
With the growth of web3 technology, new and innovative solutions are being developed that have the potential to greatly improve the lives of smallholder farmers all over the world by giving them access to new technologies and financial support to improve their businesses and livelihoods.
In this blog post, we highlight 7 projects using web3 technology to support smallholder farmers around the world.
1. AgUnity
AgUnity is using blockchain technology to combat poverty by “providing millions of smallholder farmers with digital tools that empower them to achieve economic inclusion so they, their families and their communities can prosper and thrive.” They offer a series of tools to support farmers in ‘last mile’ communities including digital identity solutions for farmers to support financial inclusion, a platform to connect smallholder farmers with markets, tools to provide valuable data to smallholder farmers, and more.
2. AgriUT
AgriUT, which is affiliated with AgUnity, offers “a digital token system that engages consumers through direct, socially conscious interactions and the means to reward farmers that grow our food.” AgriUT allows consumers to provide financial support to smallholder farmers directly, cutting out the need for a middleman. To date, 168 farmers have been supported through their platform.
3. EthicHub
EthicHub is an award winning “social enterprise that connects small farmers with the financing needed to work their land and sell their crops to direct markets.” EthicHub helps open up smallholder farmers to international markets, increasing the amount they can make for their crops, and offers a blockchain-based crowdlending platform where small investors can finance smallholder agricultural projects and gain interest on their loans.
4. Etherisc
Etherisc is a decentralized insurance protocol that offers a series of insurance products for those who traditionally lack access. One of these products is crop insurance, which provides automatic payouts to farmers impacted by drought or flood events, helping them maintain their livelihood in the event that their harvest is impacted.
5. Coffee Carbon Collective
Did you know that over 12.5 million smallholder families worldwide depend on coffee for their livelihoods? Coffee Carbon Collective aims to support smallholder coffee farmers by providing “a web3 AI-enabled ecosystem to support coffee farmers in transitioning to agroforestry by providing tools for pre-financing and tools for direct trade with climate-conscious coffee buyers.”
6. Agrichainx
Agrichainx is “Africa’s First Global Blockchain Agricultural Platform” that provides farmers with technology to bring their crops to market, gain access to financial tools, and improve their Food Security. This includes a micro-finance program for smallholder farmers, access to crop insurance, marketplaces to connect farmers to buyers, and more.
7. Hara
Hara uses blockchain technology to improve the livelihoods of smallholder farmers in Indonesia. They promote financial inclusion by connecting rural smallholder farmers with banks and insurance companies, by providing access to valuable data to increase farmer productivity, and more.
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